What are the real problems with the energy transition?

We are looking at the energy transition from Europe’s perspective based on a trajectory of global temperature increase of 1.5°C to 1.7°C by the end of the century. We show that the problem is not: The amount of additional investment needed, which will be low in net terms; The impact on real income, which will be positive since there will be reshoring: European production of renewable energy, with, moreover, equipment largely manufactured in Europe, will be substituted for imports of fossil fuels. That leaves the following problems: The rise in the relative price of energy, which will create a cost competitiveness problem for Europe if it is not offset by an adjustment at the border; The redistributive effects of the shift to renewable energy: increase in the energy sector’s value added and in energy prices for consumers .